Materiality Review Cycle

The Daigas Group identifies the materiality for the Group as a means of grasping the possible impacts of the Group's business activities on the environment and society, and conducting its business operations while managing ongoing impacts and these possible impacts. The Group identified materiality for the first time in FY2014, and has been conducting PDCA management since FY2015. Every year, the progress of actions taken under each indicator is confirmed while problems to be tackled are studied in light of the progress made. Fields whose indicators are found to be short of the required levels are improved and managed properly. The Daigas Group will continue to review materiality on a cyclical basis and fulfill its responsibility to the environment and society. By doing so, we aim to create value for stakeholders and contribute to the development of a sustainable society.

We will comprehensively evaluate the activities undertaken every year under each materiality item. Subject to the evaluation is the progress of CSR actions under main KPIs. We will also check whether each target has been set appropriately while recognizing what has been achieved and what remains as problems.
In evaluating materiality activities, we will interview persons in charge of management in relevant in-house sections, while holding meetings with outside experts. Based on the interviews and the meetings, we will sort out new issues and important issues to be studied for materiality review.
Indicators under the previous materiality (FY2019 - FY2021), and its results and evaluation are shown below.

Through repeated discussions with the relevant internal organizations, we identify materiality items that must be given higher priority, as well as internal and outside “boundaries” that must be addressed. This process takes into consideration our business operations and changes in the business environment, as well as social trends related to sustainability. In the latest materiality review process, we took into consideration the Long-Term Management Vision 2030, which was compiled in March 2017, and the Medium-Term Management Plan 2023, which was compiled in March 2021. In terms of social trends, we focused on global risks, changes in the business environment, and the contribution to the SDGs through our business.

Following internal examinations and reviews of the materiality, we request an evaluation of the appropriateness of the materiality to outside experts in certain fields, who represent the voices of society and stakeholders.
The experts are asked to provide opinions on whether the items recognized by us as materiality are appropriate, and whether there are any other items that should be recognized as materiality in light of the perceived views of society and our stakeholders. We will examine the materiality once again based on these opinions.

We finalize the newly identified materiality items and key performance indicators (KPIs) with the approval of the Group's ESG Committee, the ESG Council, and the Board of Directors, and establish a management framework before implementing the necessary initiatives.